::BMA Trade::

Economy: Fiscal Deficit of 6.3% for FY10; IMF not to be too Content

Fiscal account deficit increased to PKR929bn (6.3% of GDP) compared to the revised budgeted target of PKR723bn (4.9% of GDP)

Non tax revenue lent support as healthy collection growth of 16% YoY to PKR605bn helped surpass the total revenue target of PKR2.02trn by 3% to PKR2.07trn

Unfavorable variance in outlays caused fiscal slippages; expenditures settled at 20.5% of GDP - up by 20% YoY while missing the targets by 10% for FY10

Provincial deficit pumped up consolidated deficit considerably by adding only PKR55bn to revenue share compared to the budgeted share of PKR655bn (declining by 90% YoY)

Foreign pledges clocked in at only PKR189bn compared to targeted amount of PKR312bn for FY10. Primary source of financing remained banks - loaned PKR305bn, 111% higher than the targets

Although flood devastations remains a considerable point, IMF has not been too content with pre-flood fiscal indicipline. VAT imposition and additonal 5% import and 5-10% income tax seem the likely outcome of ongoing meeting. However, 100bps relaxation for fiscal account is also on the cards

Welcome to BMA, it gives us great pleasure to introduce BMA Trade as part of the BMA group of companies. Our firm possesses a strong capability for providing cutting edge brokerage solutions for our client. Pakistan's Equity Markets have matured rapidly and BMA's goal is to leverage our industry leadership in brokerage through a multi-product business model. Our focus is on builiding long term relationship with our clients , delivering the best possible investment solutions to meet their goals, while adhering to international best practices. BMA has built its corporate reputation upon the fundamental principles of Trust and Integrity which will continue to be key drivers for our business model moving forward.